Hi Leonard
I bought some AMC today at 27 & 29c. I bought the stock because it is way undervalued in my opinion.
I have listed some recos from Yorkton, CM Oliver, Research Capital and Kaiser.
Abacus Minerals Corporation -
Kaiser says net present value works out to $3.33 a share
Abacus Minerals Corporation AMCShares issued 178154051997-03-03 close $1.15Monday Mar 3 1997John Kaiser reports in his February 28, Kaiser Bottom-Fishing Report that Abacus Minerals' Niblack project should be viewed as a base metals deposit with a gold kicker. Mr Kaiser figures the mine could produce 1 million tons of ore per year. Mr Kaiser crunches numbers then estimates that Abacus could have annual after tax cash flow of approximately $22 million. Doing a present value calculation, he retrieves an annual cash flow multiplier of 8.51 for a 20 year mine life at a 10 per cent discount rate. The result is a $187 million net present value, for which Abacus gets 49 per cent, or $3.33 per share. By doubling the production rate, Mr Kaiser arrives at a net present value for Abacus of $5.73 a share. Mr Kaiser says Abacus stock could creep up to $1.50 to $2.00 range before it releases new information at which time investors are advised to take some profit. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Yorkton says buy
Abacus Minerals Corporation AMCShares issued 180404051997-09-03 close $0.41Wednesday Sep 3 1997Doug Leishman says why For the past two years, Abacus has been exploring the Niblack mine area on Prince of Wales Island, southeastern Alaska. This area has been explored previously by Cominco Ltd, Anaconda, Noranda Exploration Ltd and Lac Minerals. Diamond drilling in the geologically complex Lookout zone is beginning to show continuity of potentially ore grade sulphide mineralization and has led to the identification of a geologic resource of 1.8 M t grading 0.117 oz/t Au, 1.37 oz/t Ag, 1.50% Cu and 2.64% Zn. Mineralization occurs in three distinct sulphide lenses hosted by a package of felsic volcaniclastic rocks. Host rocks, gold grades and the zinc-rich nature of the ore, make the Lookout zone similar to VMS-style mineralization found at Kennecott's Greens Creek mine in southeastern Alaska and at Westmin's Myra Fall's operation on Vancouver Island. These producing mines contain 20 M tons grading 0.12 oz/t gold, 13.39 oz/t silver, 12.79% zinc, and 3.79% lead, and 30 M tons grading 0.06 oz/t gold, 6% zinc and 1.4% copper, respectively. Drilling will continue into September at Niblack, after which the company will evaluate the feasibility of driving an adit to explore the Lookout zone from underground. During the winter months, news can be expected from Argentina as Abacus begins work on a land package in the Cerro Vanguardia area recently acquired from Barrick Gold Corp. The company is well financed with $3.5 million in cash, sufficient to complete exploration at Niblack as well as initial exploration in Argentina. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Abacus Minerals Corporation -
C.M. Oliver says buy
Abacus Minerals Corporation AMCShares issued 180404051997-10-17 close $0.48Friday Oct 17 1997Darcy Krohman says why Summary A 1.8 million ton resource grading 3.6 g/t gold, 42.5 g/t silver, 1.50% copper and 2.64% zinc has been outlined by 116 drill holes on the company's Niblack property in southeast Alaska. A joint venture agreement allows Teck Corp to earn a 51% interest by completing a bankable feasibility study and by bringing the project into production. Abacus is required to complete a pre-feasibility study. A $4 to $6 million underground exploration program, proposed for the spring of 1998, should advance the project to pre-feasibility. The company recently acquired six gold properties in the southern Argentinean Province of Santa Cruz from Barrick Gold Corp. Abacus may earn a 100% interest in the properties by spending an initial US$2.7 million. All six properties host epithermal type alteration and mineralization similar to the nearby Cerro Vanguardia deposit owned by Anglo American. Cerro Vanguardia has a reserve of 3.8 million ounces of gold. The company is well financed with over $2.2 million in working capital. Introduction While Niblack remains the company's focus, Abacus' venture into Argentina should help maintain its share price through the Alaskan winters when the flow of information from Niblack is minimal. The Argentinean projects cover some very prospective geology and would likely become the company's exploration focus should Teck exercise its option to develop Niblack. The 1997 exploration and diamond drill program at Niblack proved successful, returning economic grades over significant intervals. Once the information acquired from the current field season is consolidated, substantial tonnage should be added to the project's current resource base of 1.8 million tons. In two years the economics of the Niblack property have advanced considerably with the completion of over 23,000m of drilling in 101 holes. The recently completed program should add sufficient resources to justify an underground exploration program in 1998. While initial expenditures for the program could reach $5 million, it appears to be an essential phase for outlining the economic potential of the property as it will provide a base for future exploration and reserve definition. The following year should prove to be interesting for Abacus Minerals. Preliminary sample results from Argentina, expected before year end, will hopefully support a drill program planned for January, while analysis of drill hole data from this summer's program at Niblack should help advance the project to prefeasibility. Niblack Project The Niblack property, on Prince of Wales Island in southeastern Alaska, hosts economic grades and widths of precious-metal rich, volcanogenic massive sulphide (VMS) type mineralization. The project, a joint venture with Teck Corp, requires AMC to carry the program to pre-feasibility. Once at this stage, Teck has the opportunity to earn a 51% interest by preparing a bankable feasibility study and by subsequently bringing the project into production. Should Teck decide to back-in, Abacus will no longer be required to make financial contributions in the mine construction phase or in the continued exploration of the the property. Flour Daniel Wright Ltd has been engaged to prepare a pre-feasibility study on behalf of Abacus. The property was originally acquired from Barrick in 1995, for consideration of 1 million shares of AMC and $200,000. A total of 40,000m of diamond drilling has been completed in 154 holes on the property. Abacus has drilled over 23,000m during the last two field seasons, while previous operators completed approximately 17,000m. The mineralization occurs in geological environments and structures similar to those encountered at Westmin's Myra Falls operation on Vancouver Island and Kennecott's Greens Creek mine near Juneau, Alaska. The Lookout zone has received the most attention to date. Within this zone, ore grade mineralization is found in felsic volcanic units within the footwall of the Bluebell fault. While the hanging wall remains unaltered, the well-mineralized footwall hosts pervasive sericite and chlorite alteration and pyrite. Significant quantities of silica have also flooded the footwall. The 1996 drill campaign outlined a drill indicated resource of 1.8 million tons grading 3.6 g/t Au, 42.5 g/t Ag, 1.50% Cu and 2.64% Zn from Lookout. The recently completed 1997 drill program will certainly add to this total. Separate resource calculations by Teck Corp verified Abacus' 1996 estimates. A new discovery this field season was the Trio zone. The area, 330m east of Lookout, produced intersections up to 6.96% Cu and 8.18% Zn over 5m. The exploration program proposed for 1998 will probably address underground exploration of both these zones. Management believes a minimum 3 to 5 million ton resource is required to bring the project to production. This is presumably the minimum reserve Teck Corp would require to justify a 1,000 to 2,000 ton per day underground mine and processing facility. Considering the encouraging drill intersections encountered during the current field season and with significant upside potential from the other prospects, this is certainly a realistic goal. With revised resource/reserve calculations expected shortly the project is likely to proceed to the next phase in 1998. This program will probably include boring a 500m exploration edit from the Trio zone through to the Lookout zone. Crosscuts along Lookout would then be completed. An alternative tunneling program would begin near the present camp location and drift through the Mammoth zone with the completion of a rise into the Lookout zone. Tunneling would provide insight's into the complexities of the local geology and ore deposit mineralization while providing underground drill stations for further exploratory and definition drilling. The program would also reduce the need for deeper, more expensive surface drilling. Along with the Lookout and Trio zones, the other prospects being actively explored on Niblack include the Mammoth, Mine, Lindsay, 88 and Wascal zones. Argentinean Properties Abacus' venture into Argentina was precipitated by the limited field season in Alaska and by the company's close relationship with Barrick Gold Corp. A 100% interest in six properties was acquired from Barrick by committing to spend US$2.7 million on exploration and by issuing 400,000 common shares of AMC. Once Abacus' commitment is fulfilled Barrick can back-in for 50% by spending the next US$3.7 million. All six of the properties are epitherrnal gold targets associated with Jurassic volcanism. The projects are in the southern Argentinean province of Santa Cruz, in close proximity to Anglo American's Cerro Vanguardia gold deposit (3.8 million ounces Au). While none of the properties have seen significant work programs, trenching in 1996 by Barrick on the La Manchuria property returned encouraging precious metal grades over good widths. The first trench returned 1.45 g/t Au and 57.5 g/t Ag over 110m while the second trench returned 1.37 g/t Au and 14.8 g/t Ag over 180m. The trenches were located 125m apart and cover stockwork zones hosted in rhyolitic units. Abacus expects to drill this prospect in January 1998. A $750,000 million exploration program has been launched with surface work including continued trenching expected to be completed before December. A 2,000m drill program is proposed for early 1998. Conclusions Although its economic potential remains to be determined, the Niblack project has progressed considerably in the last two years and provides a good opportunity for both Abacus and Teck. Teck's financial and technical support of the project emphasize its merit. Teck has also assigned Bob Friesen, a senior geologist with the company, to provide technical support to management and field crews. In order to justify the $100 million capital investment required to construct a 1,000 to 2,000 ton per day underground mine and processing facility, a minimum 3 to 5 million ton deposit is required. We believe the market is currently valuing Abacus on the basis of a currently defined resource of 1.8 million tons, and the company's interest in the project being ultimately diluted to 49% by Teck. The underground program proposed for 1998 should provide important clues as to the continuity and extent of the mineralization and the nature of the structural controls affecting the Niblack property. A notable impact on the share price of AMC may also precipitate from the drill campaign proposed for the La Manchuria property. Should this program produce encouraging results, the Argentinean projects could eventually overshadow those received from Niblack. With a current market capitalization of C$15 million fully diluted (C$0.48 per share) there is little downside in owning Abacus shares. We believe the information to be obtained from the 1998 program on Niblack, along with the consolidation of data from the 1997 program should have a significant impact on the share price of the company in the following 12 months. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Abacus Minerals Corporation -
Research Capital says buy
Abacus Minerals Corporation AMCShares issued 180404051997-07-15 close $0.49Tuesday Jul 15 1997Russ Cranswick says why On July 15 1997 (Stockwatch, July 16), Abacus released results from another eight holes of an ongoing greater than 10,000 metre diamond drilling program at its Niblack gold-rich massive sulphide project in the Alaskan panhandle. The release encompasses four holes completed at the newly discovered Trio zone, which lies 300 metres along strike to the east of the Lookout zone, two holes drilled down plunge on the Lookout zone, and two holes drilled 600 metres north of Lookout at the Mammoth zone. Of the four holes drilled at the newly discovered Trio zone, holes LO-133 and -134 stepped 30 metres west of the fence of three discovery holes (LO-124, -125 and -127) reported last week and yielded three significant intersections. The 6.96% copper and 8.18% zinc over 4.9 metres in LO-134 is particularly interesting. Holes LO-131 and -130, drilled 40 and 80 metres east of the discovery fence, intersected massive rhyolite with disseminated sulphide mineralization. The fact that step-outs to the west at Trio have hit, the farthest east hole missed, and L0-131 intersected low gold and precious metal grades, may indicate that the zone plunges westerly, much like the nearby Lookout zone. Two holes reported from the Lookout zone, LO-132 and -132-W-1 (wedged from 350 metres down LO-132), tested the zone on a fence 80 metres west of hole LO-126 previously reported. Both holes intersected low grade zinc mineralization above the target depth. Given the erratic upper edge of the zone, and the known occurrence of local low grade windows within the zone, the lack of significant mineralization in these particular holes is not a major worry. The zone remains wide open at depth and is largely open along strike. The two holes drilled at the Mammoth zone to the north each intersected wide zones of anomalous base metal mineralization. The geology in these holes continues to support the company's structural interpretation that the Mammoth zone may occur on the limb of a synclinal fold that links the Mammoth horizon with the Lookout horizon. We are highly encouraged that this year's drilling continues to expand the resource at Niblack. The program is now approximately 50% complete and many more holes have yet to be drilled. Given the company's working capital position, significant expansion potential at lookout and other zones at Niblack, plus the under-explored gold projects that the company recently optioned from Barrick Gold, Abacus remains undervalued. We reiterate our speculative buy recommendation and have a one year target price of $2.50. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Mr Metals
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